ProShares Expands Foreign Leverage With New ETFs
Source: http://www.indexuniverse.com/sections/newsinfocus/5949-proshares-expands-overseas-leverage-with-4-new-etfs.html?Itemid=3&utm_source=straightstocks.com&utm_medium=sidebar&utm_campaign=rssPosted on Thursday, June 4th, 2009 | In Exchange Traded Funds, Market Commentary
New ProShares ETFs aim to provide 200% leverage to four key international markets.
If you think international markets are on the verge of a new leg
up in the ongoing broad global rally, a few more tools via exchange-traded
funds are now available to provide more leverage.
ProShares launched on Wednesday four ETFs taking 200% positions in
four popular foreign indexes. Two are broad in geographic reach and each adds
to existing ProShares ETFs that take inverse positions with the same
benchmarks.
The new ProShares are the:
- ProShares Ultra MSCI EAFE (NYSE Arca: EFO)
- ProShares Ultra MSCI
Emerging Markets (NYSE Arca: EET)
- ProShares Ultra FTSE/Xinhua China 25 (NYSE
Arca: XPP)
- ProShares Ultra MSCI Japan (NYSE Arca: EZJ)
These ETFs each seek to
capture 2 times the daily performance of their underlying benchmarks. That’s
something to consider since rival Direxion recently moved to introduce a series
of leveraged ETFs that track monthly index performances. (See related article
here.)
In theory, being able to track a longer
return period should make the new Direxion ETFs better-suited for longer
investing periods. That assumes, of course, investors hold the proposed ETFs at
the beginning—rather than later—in any given month.
Two of the proposed
Direxion leveraged ETFs tracking monthly performance would follow the same
indexes as the new EFO and EET.
But leverage on a monthly performance
basis has yet to come out. In the meantime, ProShares clearly has first-mover
status in the international inverse ETF marketplace. Rydex still doesn’t have
any ETFs that leverage foreign markets. Direxion has two such funds, the Daily Developed
Markets Bull 3x Shares ETF (NYSE: DZK) and the Daily Emerging Markets Bull 3x
Shares ETF (NYSE: EDC). As their names imply, each ETF aims at 300% of the daily
returns of their respective MSCI benchmarks.
The other ways to use
leverage now available overseas is all through ProShares ETFs at the moment. But
stay tuned …
Last 5 posts by IndexUniverse Staff
- Will UNL Beat UNG? - November 19th, 2009
- A Real Hedge Fund ETF? - November 17th, 2009
- ProShares’ Positive Tax Surprise? - November 17th, 2009
- Better Than Cash? - November 17th, 2009
- Stoxx Indexes Bought; Company Valued At $900M - November 13th, 2009
Daily Emerging Markets Bull;, Emerging Markets, Exchange Traded Funds, few more tools;, FTSE/Xinhua China 25;, index universe, Market Commentary, Msci Eafe, ProShares Ultra MSCI Japan;, Shares ETF;
 About IndexUniverse Staff (http://indexuniverse.com)
IndexUniverse encompasses the world of indexing and beyond. Our website and related subsites cover product and market developments related to index funds, exchange-traded funds (ETFs), index derivatives (futures / options / swaps), and the sophisticated investment strategies which use these financial tools. Our goal is to provide the industry's best news, columns, research, and features about the dynamic field of index-based investing and trading. Industry professionals, individual investors, business/finance students and academic researchers will find various features targeting their interests and needs. We also provide valuable tools and data to assess markets and investment products, and specialized discussion boards for our registered members to exchange cutting-edge ideas and market views. We aim to be educational, thought-provoking, and most importantly, rigorously independent in our perspective. The development of IndexUniverse was a global effort, originally led by Steven Schoenfeld and Jim Wiandt, supported by John Spence and a diverse team in the U.S., Europe and Latin America, and enhanced by editorial contributors from around the world. The site is now managed solely by Jim Wiandt and the global Index Publications LLC team. The site was originally started by Steven as a data and information complement to his book, Active Index Investing, published by Wiley Finance in July 2004. As he recognized the need and potential for such a resource, in August 2003, Steven partnered with Jim, who as editor of The Journal of Indexes similarly recognized the industry's need for timely, useful and independent information on products and markets. |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.